Head-To-Head Analysis: Zimmer Biomet (NYSE:ZBH) versus Butterfly Network (NYSE:BFLY)

Zimmer Biomet (NYSE:ZBH) and Butterfly Network (NYSE:BFLY) are both healthcare companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, analyst recommendations, profitability, earnings and valuation.

Risk & Volatility

Zimmer Biomet has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, Butterfly Network has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500.

Institutional & Insider Ownership

88.9% of Zimmer Biomet shares are held by institutional investors. Comparatively, 37.9% of Butterfly Network shares are held by institutional investors. 1.3% of Zimmer Biomet shares are held by insiders. Comparatively, 22.0% of Butterfly Network shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings for Zimmer Biomet and Butterfly Network, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zimmer Biomet	1	15	6	0	2.23
Butterfly Network	1	1	4	1	2.71

Zimmer Biomet presently has a consensus price target of $103.33, suggesting a potential upside of 16.15%. Butterfly Network has a consensus price target of $8.54, suggesting a potential upside of 6.84%. Given Zimmer Biomet’s higher possible upside, equities analysts plainly believe Zimmer Biomet is more favorable than Butterfly Network.

Valuation and Earnings

This table compares Zimmer Biomet and Butterfly Network”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zimmer Biomet	$8.23 billion	2.06	$705.20 million	$4.11	21.65
Butterfly Network	$97.61 million	21.81	-$77.06 million	($0.29)	-27.57

Zimmer Biomet has higher revenue and earnings than Butterfly Network. Butterfly Network is trading at a lower price-to-earnings ratio than Zimmer Biomet, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Zimmer Biomet and Butterfly Network’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zimmer Biomet	9.48%	13.12%	7.23%
Butterfly Network	-66.74%	-33.99%	-22.96%

Summary

Zimmer Biomet beats Butterfly Network on 10 of the 15 factors compared between the two stocks.

About Zimmer Biomet

Zimmer Biomet Holdings, Inc., together with its subsidiaries, operates as a medical technology company worldwide. The company designs, manufactures, and markets orthopedic reconstructive products, such as knee and hip products; S.E.T. products, including sports medicine, biologics, foot and ankle, extremities, and trauma products; craniomaxillofacial and thoracic products comprising face and skull reconstruction products, as well as products that fixate and stabilize the bones of the chest to facilitate healing or reconstruction after open heart surgery, trauma, or for deformities of the chest. It also offers robotic, surgical, and bone cement products. The company's products and solutions are used to treat patients suffering from disorders of, or injuries to, bones, joints, or supporting soft tissues. It serves orthopedic surgeons, neurosurgeons, hospitals, stocking distributors, healthcare dealers, and other specialists, as well as agents, healthcare purchasing organizations, or buying groups. The company was formerly known as Zimmer Holdings, Inc. and changed its name to Zimmer Biomet Holdings, Inc. in June 2015. Zimmer Biomet Holdings, Inc. was founded in 1927 and is headquartered in Warsaw, Indiana.

About Butterfly Network

Butterfly Network, Inc. develops, manufactures, and commercializes ultrasound imaging solutions in the United States and internationally. It offers Butterfly iQ, a handheld and single-probe whole body ultrasound system; Butterfly iQ+ and iQ3 ultrasound devices that can perform whole-body imaging in a single handheld probe integrated with the clinical workflow, and accessible on a user's smartphone, tablet, and almost any hospital computer system; and Butterfly iQ+ Vet, a handheld ultrasound system designed for veterinarians. The company also provides Butterfly system, which includes probes, and related accessories and software subscriptions to healthcare systems, physicians, and healthcare providers through a direct sales force, distributors, and eCommerce channel. In addition, it offers cloud-based software solutions to healthcare systems, teleguidance, in-app educational tutorials, and formal education programs through its Butterfly Academy software, as well as professional services for large scale deployments; and ScanLab, an education-only app provides written walkthroughs and reference imagery to guide real-time educational scanning, enhancing the learning process. Butterfly Network, Inc. was founded in 2011 and is headquartered in Burlington, Massachusetts.